₦airaland Forum

I think say them don commission this before??

Relief as Buhari Inaugurates Dangote Refinery May 22

Efforts by the federal government to make the country self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world’s largest single-train refinery, is set for inauguration on May 22 by President Muhammadu Buhari. A source at the refinery confirmed to THISDAY last night that the refinery has been completed with pre-inauguration tests ongoing. He disclosed that President Buhari would inaugurate the plant on Monday, May 22. Dangote Industries Limited had earlier hinted that the inauguration of the refinery in Lagos would take place before the end of the tenure of President Buhari on May 29, 2023.


The Group Chief Branding and Communications Officer of Dangote Industries Limited, Mr. Anthony Chiejina, had in a statement debunked reports that the refinery was among the projects scheduled for inaugurated by Buhari during his visit to Lagos in January. “However, our refinery will be commissioned before President Muhammadu Buhari formally leaves office in May 2023, and the public will be duly informed and invited to the epic event,” the company reportedly said in the statement.


The Dangote Refinery complex, which is located in the Lekki Free Zone area of Lagos, covers a land area of approximately 2,635 hectares, which is larger than the size of Victoria Island in Lagos. The refinery is the biggest refinery in Africa and also the biggest single-train refinery in the world. A single-train refinery uses an integrated distillation unit or one Crude Distillation Unit (CDU) to refine crude oil into various petroleum products, as against the use of multiple distillation units by most big refineries.

Due to the large capacity of the refinery, its pipeline infrastructure is the largest anywhere in the world, with 1,100 kilometres to handle three billion Standard Cubic Feet per day (Scf/d) of gas.


According to a report by the company, the refinery has a 435MW-capacity power plant that is able to meet the total power requirement of Ibadan Electricity Distribution Company (IBEDC). On completion, the refinery is expected to meet 100 per cent of the Nigerian requirement of all refined products and also have a surplus of each of these products for export. The refinery is designed to process Nigerian crude and can also process other crudes. It is a multi-billion dollar project that will create a market for $21 billion per annum of Nigerian crude oil.

Thank God the refinery will be commissioned this year. Let’s keep our fingers crossed on the fuel ⛽️ subsidy removal.

DeLaRue:
Commissioning doesn't mean it is ready to start producing.

I assume they want Buhari to take some credit ahead of his departure from office.

Btw, from the date Dangote declares construction is complete, the refinery will go through several months of testing, may be up to six months.

Once testing is complete, production will be scaled up gradually and they may not reach full production for another 6 - 9 months.

In a massive production environment like this, you can't just press a button, and say, oya, produce at 100%.

It wasn't even Buhari project
it was during Goodluck Jonathan that the projects was implemented

Tinubu is a lucky man.

SOSinNigeria:
Do they want to commission it before completing the refinery? Last time we checked, they reported it will take another couple of years and millions of dollars to be borrowed before it can be completed.

I smell fish, I hope this is not a smokescreen for another round of siphoning Chinese loans.

As at December last year it was 97% completed. Perhaps they are waiting for Tinubu to take over government before starting operations. Because Tinubu was very instrumental in its establishment.

God bless Lagos.

🙏🏾

Zionmdde:
I once mentioned here that dangote refinery will come up, ph refinery will follow, before subsidy removal. FG will not be mad to let petrol sell at over 400 in this country

Even if Dangote Refinery is up, do you think he would sell at 180? The only way we can have cheap petrol from Dangote is of we have a special arrangements where crude oil is sold cheaper to him way below international market price.

Femmyfamous4u:
Even if Dangote Refinery is up, do you think he would sell at 180? The only way we can have cheap petrol from Dangote is of we have a special arrangements where crude oil is sold cheaper to him way below international market price.

Nope Dangote will not really sell that cheap. Neither will crude be sold cheaper to him. NNPC is now a limited company unless government will subsidize the crude by paying nnpc which I know is not possible.
Let's hope

But the goodness is that our currency will bounce back a bit

Zionmdde:
Nope Dangote will not really sell that cheap. Neither will crude be sold cheaper to him. NNPC is now a limited company unless government will subsidize the crude by paying nnpc which I know is not possible.
Let's hope

But the goodness is that our currency will bounce back a bit

Exactly, Subsidy will be phased out totally. The only way to have cheaper fuel is to adjust it in the price of crude. First, it has been agreed that crude will be sold to Dangote in Naira and not in dollars.

Femmyfamous4u:
Exactly, Subsidy will be phased out totally. The only way to have cheaper fuel is to adjust it in the price of crude. First, it has been agreed that crude will be sold to Dangote in Naira and not in dollars.

Nah i don't think so. Dangote is also looking at exporting his products and nogeria can't subsidize crude for other countries

One thing I am sure is that dangote is a very greedy monopolistic man. We can only hope for the best

Zionmdde:
Nah i don't think so. Dangote is also looking at exporting his products and nogeria can't subsidize crude for other countries

One thing I am sure is that dangote is a very greedy monopolistic man. We can only hope for the best

It's so easy. We know the millions of litres Dangote will supply. Arrangements can be made to that effect.

DeLaRue:
Commissioning doesn't mean it is ready to start producing.

I assume they want Buhari to take some credit ahead of his departure from office.

Btw, from the date Dangote declares construction is complete, the refinery will go through several months of testing, may be up to six months.

Once testing is complete, production will be scaled up gradually and they may not reach full production for another 6 - 9 months.

In a massive production environment like this, you can't just press a button, and say, oya, produce at 100%.

You don't know what is really going on there right now. Your opinions are entirely based on speculations.

Dangote, one of the most privileged Nigerian.



Check my siggy no vex.

Guestlander:
You don't know what is really going on there right now. Your opinions are entirely based on speculations.

But he’s right.

It’s a massive refinery and it would have to be operated in stages. Even with the Lekki Sea Port that was commissioned - I doubt the whole thing is fully operational right now.

Good development.

But this would’ve been better if it were sited in Ondo state with a free trade zone and a sea port. That would’ve opened up the state to more investments.

Zionmdde:
Sharrap there.
That refinery will not make you better than anyone in this country. It's the same petrol station everyone will buy from. So sharrap and stop sounding as if u have a say

Anyway it's a good news, let's see the impact on naira, though am not thinking dangote will make fuel any cheaper

Dangote will sell fuel at international price unless FG is ready to pay subsidy.

Creeper:
But he’s right.

It’s a massive refinery and it would have to be operated in stages. Even with the Lekki Sea Port that was commissioned - I doubt the whole thing is fully operational right now.

Yeah, but we don't know exactly what stage they are at the moment. So, we are just speculating.

Guestlander:
Yeah, but we don't know exactly what stage they are at the moment. So, we are just speculating.

But it’s still common sense.

Creeper:
But it’s still common sense.

Perhaps, but we don't know exactly what stage they are at the moment.

Guestlander:
Perhaps, but we don't know exactly what stage they are at the moment.

Most times when things are commissioned - it doesn’t necessarily mean that they’re fully operational.

And even if it’s fully operational when commissioned - it doesn’t necessarily mean they’ll start running it to its full capacity. They’ll test run it for a while. Then gradually increase the capacity over time. That’s how you attain optimal performance.

Femmyfamous4u:
It's so easy. We know the millions of litres Dangote will supply. Arrangements can be made to that effect.

Not so easy
Find out how dangote gets his raw materials for cement, and why cement is costly. He gets everything for running his cement plant cheap, from power to raw materials. Yet, we buy cement very costly

Creeper:
Most times when things are commissioned - it doesn’t necessarily mean that they’re fully operational.

And even if it’s fully operational when commissioned - it doesn’t necessarily mean they’ll start running it to its full capacity. They’ll test run it for a while. Then gradually increase the capacity over time. That’s how you attain optimal performance.

I never said you were wrong. I said we don't know what stage they are. When the Urea plant was commissioned they were already up and running.

Zionmdde:
Not so easy
Find out how dangote gets his raw materials for cement, and why cement is costly. He gets everything for running his cement plant cheap, from power to raw materials. Yet, we buy cement very costly

He gets cheap power? According to what standard? I don't think any factory is getting cheap power in Nigeria at the moment.

Zionmdde:
Not so easy
Find out how dangote gets his raw materials for cement, and why cement is costly. He gets everything for running his cement plant cheap, from power to raw materials. Yet, we buy cement very costly

Power is not cheap bro.

Femmyfamous4u:
Power is not cheap bro.

Dangote gets it cheap.

Guestlander:
He gets cheap power? According to what standard? I don't think any factory is getting cheap power in Nigeria at the moment.

Dangote gets cheap power. Cheap doesn't mean 1 naira, but compared to what other industries spend on power, dangote Gets it very cheap. If you find out how he gets power you will understand.

Zionmdde:
Dangote gets cheap power. Cheap doesn't mean 1 naira, but compared to what other industries spend on power, dangote Gets it very cheap. If you find out how he gets power you will understand.

Please tell us how he gets cheap power. This information could be very useful to a lot of people.

Guestlander:
Please tell us how he gets cheap power. This information could be very useful to a lot of people.

I will be generic as possible
Based on your location the power you use comes from hydro dams or gas turbines.
Raw materials for hydro dam is water
Raw material for gas turbine is gas
The power generation company feeding you are likely using a gas turbine. They generate, feed into the national grid, power distribution distributes from there
Some large companies generate their own power.
Now that Raw material for gas turbines

Who owns it?
I guess that's where I will stop

Going deeper will make you understand why dangote doesn't involve in politics

Zionmdde:
I will be generic as possible
Based on your location the power you use comes from hydro dams or gas turbines.
Raw materials for hydro dam is water
Raw material for gas turbine is gas
The power generation company feeding you are likely using a gas turbine. They generate, feed into the national grid, power distribution distributes from there
Some large companies generate their own power.
Now that Raw material for gas turbines

Who owns it?
I guess that's where I will stop

Going deeper will make you understand why dangote doesn't involve in politics

How is what you wrote different for other companies?

Guestlander:
How is what you wrote different for other companies?

The same way all companies source forex at different exchange rates. CBN subsidizes for some and ask others to go to hell.